Being that most of us on this blog happen to be capitalists, this article should bring some comfort to us.Why the oil boom will eventually bust. It's a terrific explanation of why in a supply side economy oil prices will definitely come down. I think that he may have missed one critical point, in that while the cost of crude may come down we still have a shortage of refineries in this country so while there may be excess crude in the market it's still going to take a long time to convert it into gasoline. But then again, maybe because of all the crude the refineries will simply be able to work 24/7 and the gas supplies will go up as well. I'm not an economist, so I'll let the expert do the talking - read the article.
Friday, June 06, 2008
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4 comments:
North Dakota just approved the first new refinery in 50 years in the USA. It is a start.
And the Eco-Nuts are vowing to fight the refinery tooth and nail. I just don't understand how people can think that conservation is the only thing we need to fix our current energy situation. Yes, conservation is a component, but we do need more domestic supply or refining in order to bring down prices long term.
I don't know if you noticed this or not, but US oil production peaked 37 years ago. So, just what exactly will this refinery refine?
Uh, the millions of barrels of sweet crude that we import daily.
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